Question

Charging the whole Cost of Asset in the First Year itself is not Correct as per which accounting principle?​

Answer 1

Since, this is not in conformity with the matching principle which requires revenues for a given period to be matched against expenses for the said period.

Answer 2

"Matching Concept"

Explanation:

All expenses matched with the revenue of that period should only be taken into consideration. In the financial Statement of the organization if any revenue is recognized then expenses related to earn that revenue should also be recognized. it consideres the occurence of expenses and income and do not concentrate on actual inflow and outflow of cash.